Most Americans Worry Social Security Will Run Out of Money -- Are They Right to Worry?
The Social Security Act was passed in 1935 to reduce poverty levels among older Americans. At the time, the U.S. economy had crumbled under the weight of the Great Depression, and more than half of seniors lacked the means to support themselves financially. The Social Security program replaced many ineffective state-run pension plans, providing retired workers aged 65 and older with a reliable source of income.
Social Security has since expanded to cover other types of beneficiaries -- the spouses of retired workers, survivors, and disabled workers -- and the program has been relatively successful. Social Security benefits kept nearly 22.5 million individuals out of poverty in 2020, according to the Center on Budget Policy and Priorities.
That said, the Social Security program is facing some big problems, and one of the most concerning issues is the potential depletion of the trust fund that pays benefits. In fact, 70% of Americans age 26 and older worry the Social Security program will run out of funding in their lifetimes, and 33% of those individuals believe they will never receive a dime in Social Security benefits, according to the Nationwide Retirement Institute.
Source Fool.com
